Maximum allowed rent increase in California. The lecture explains the application of the California Tenant Protection Act (TPA) to rent increases. It states that while individual homes and condos are exempt, most rental properties in California are subject to the TPA unless they qualify for specific exemptions.
Under the TPA, rent increases are limited to the lesser of 5% plus the consumer price index (CPI) change or a total of 10% over any 12-month period. The CPI varies by metropolitan area, with examples given for Los Angeles, San Francisco, and San Diego. If CPI data isn’t available for a specific area, the landlord should contact the office for guidance.
Landlords must also provide proper written notice before increasing rent: 30 days for increases up to 10%, and 90 days if the increase exceeds 10%. Notices must be sent in writing to allow tenants to prepare financially. Additionally, landlords should check local laws that might impose stricter rent increase limits.